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The main reason that diversified shareholders might NOT want their corporate managers to purchase insurance against firm specific losses is that:
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a. they like risk
b. they have already diversified away the risk that is being insured
c. they are risk averse
d. cash flow variability increases their return on investment.
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https://brainmass.com/business/business-management/purchase-insurance-242138
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The main reason that diversified shareholders might NOT want their corporate managers to purchase insurance against …
